Question 1

Which of the following economic characteristics is consistent with a grocery store chain?

Accepted Answer

A)  minimal competition 
B)  extensive competition 
C)  high net income to sales 
D)  differentiated product 
A)  minimal competition 
B)  extensive competition 
C)  high net income to sales 
D)  differentiated product

Question 2

When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as

Accepted Answer

A)  a quality strategy 
B)  a low-cost leadership strategy 
C)  a vertical integration strategy 
D)  a product differentiation strategy 
A)  a quality strategy 
B)  a low-cost leadership strategy 
C)  a vertical integration strategy 
D)  a product differentiation strategy

Question 3

The higher the value added from any activity, the higher should be the ____________________ from engaging in that activity.

Accepted Answer

The answer of The higher the value added from any...

Question 4

Accounts receivable represent:

Accepted Answer

A)  amounts which are due to stockholders. 
B)  amounts which have been borrowed to finance operations. 
C)  amounts which are owed to the company by its customers resulting from credit sales. 
D)  amounts which are owed by the company to its suppliers for past purchases. 
A)  amounts which are due to stockholders. 
B)  amounts which have been borrowed to finance operations. 
C)  amounts which are owed to the company by its customers resulting from credit sales. 
D)  amounts which are owed by the company to its suppliers for past purchases.

Question 5

The tools of effective financial statement analysis are also useful for assessing whether to extend ____________________ to a firm, either for a short-term or for a long-term.

Accepted Answer

The answer of The tools of effective financial statement analysis...

Question 6

What are the six interconnected activities related to financial statement analysis?

Accepted Answer

The answer of What are the six interconnected activities related...

Question 7

Under the Sarbanes-Oxley Act of 2002, financial statements must include both a Management Assessment and an Assurance Opinion. What information do the Management Assessment and an Assurance Opinion provide to financial statement users?

Accepted Answer

The Management Assessment makes explicit

Question 8

Match between columns
                        Premises:  Paid cash for supplies
 Purchased equipment by paying cash
 Collected cash on account from customers
 Paid dividends to stockholders
 Paid suppliers for fabric
 Borrowed money from a bank on a long-term note
 Paid interest to bank on the note
 Paid wages to employees
 Sold shares of common stock to new stockholders

Accepted Answer

The Answer of operating activities and investing activities and financing is...

Question 9

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Accepted Answer

A)  balance sheet. 
B)  income statement. 
C)  statement of cash flows. 
D)  the Management Assessment. 
A)  balance sheet. 
B)  income statement. 
C)  statement of cash flows. 
D)  the Management Assessment.

Question 10

Labor contracts and purchase order commitments are examples of ____________________ contracts.

Accepted Answer

The answer of Labor contracts and purchase order commitments are...

Question 11

On a common size basis, which of the following assets is normally largest for a commercial bank?

Accepted Answer

A)  Accounts and Notes Receivable 
B)  Inventory 
C)  Property, Plant and Equipment 
D)  Cash and Marketable Securities 
A)  Accounts and Notes Receivable 
B)  Inventory 
C)  Property, Plant and Equipment 
D)  Cash and Marketable Securities

Question 12

How easily can customers switch to substitute products is a question one might ask when assessing the ___________________________________.

Accepted Answer

threat of

Question 13

Which of the following assets would appear on the balance sheet at an amount greatly below its fair market value?

Accepted Answer

A)  inventory 
B)  marketable securities 
C)  equipment 
D)  brand name 
A)  inventory 
B)  marketable securities 
C)  equipment 
D)  brand name

Question 14

Which two organizations are working together to harmonize financial reporting worldwide?

Accepted Answer

A)  FASB and IASB 
B)  GAAP and FASB 
C)  SEC and FASB 
D)  EU and SEC 
A)  FASB and IASB 
B)  GAAP and FASB 
C)  SEC and FASB 
D)  EU and SEC

Question 15

Which of the following economic characteristics is consistent with a grocery store chain?

Accepted Answer

A)  Low barriers to entry. 
B)  High levels of research and development. 
C)  High profit margins. 
D)  Low capital intensity. 
A)  Low barriers to entry. 
B)  High levels of research and development. 
C)  High profit margins. 
D)  Low capital intensity.

Question 16

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

Accepted Answer

A)  Because it shows the dividends that have been paid to stockholders. 
B)  Because it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services. 
C)  Because shows the net increase or decrease in cash during the period. 
D)  Because it gives the most information about how operations have been financed. 
A)  Because it shows the dividends that have been paid to stockholders. 
B)  Because it indicates a company's ability to generate cash from sales to meet current cash payments for goods or services. 
C)  Because shows the net increase or decrease in cash during the period. 
D)  Because it gives the most information about how operations have been financed.

Question 17

Under the ____________________ basis of accounting, a firm recognizes revenue when it performs all or a substantial portion, of the services it expects to perform and receives either cash or a receivable.

Accepted Answer

The answer of Under the ____________________ basis of accounting, a...

Question 18

How easily can new firms enter a market is a question one might ask when assessing _____________________________________________.

Accepted Answer

threats of

Question 19

Assets that do not represent a claim to a fixed amount of cash are called ____________________ assets.

Accepted Answer

The answer of Assets that do not represent a claim...

Which of the following economic characteristics is consistent with a grocery store chain?

When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as

The higher the value added from any activity, the higher should be the ____________________ from engaging in that activity.

Accounts receivable represent:

The tools of effective financial statement analysis are also useful for assessing whether to extend ____________________ to a firm, either for a short-term or for a long-term.

What are the six interconnected activities related to financial statement analysis?

Under the Sarbanes-Oxley Act of 2002, financial statements must include both a Management Assessment and an Assurance Opinion. What information do the Management Assessment and an Assurance Opinion provide to financial statement users?

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Labor contracts and purchase order commitments are examples of ____________________ contracts.

On a common size basis, which of the following assets is normally largest for a commercial bank?

How easily can customers switch to substitute products is a question one might ask when assessing the ___________________________________.

Which of the following assets would appear on the balance sheet at an amount greatly below its fair market value?

Which two organizations are working together to harmonize financial reporting worldwide?

Which of the following economic characteristics is consistent with a grocery store chain?

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

Under the ____________________ basis of accounting, a firm recognizes revenue when it performs all or a substantial portion, of the services it expects to perform and receives either cash or a receivable.

How easily can new firms enter a market is a question one might ask when assessing _____________________________________________.

Assets that do not represent a claim to a fixed amount of cash are called ____________________ assets.

Asset and Liability Valuation and Income Measurement

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Accounting Quality

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow-Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters

Exam 1: Overview of Financial Reporting, Financial Statement Analysis, and Valuation

Which of the following economic characteristics is consistent with a grocery store chain?

When a firm attempting to create unique products or services for particular market niches, in order to achieve relatively high profit margins, this is best known as

The higher the value added from any activity, the higher should be the ____________________ from engaging in that activity.

Accounts receivable represent:

The tools of effective financial statement analysis are also useful for assessing whether to extend ____________________ to a firm, either for a short-term or for a long-term.

What are the six interconnected activities related to financial statement analysis?

Under the Sarbanes-Oxley Act of 2002, financial statements must include both a Management Assessment and an Assurance Opinion. What information do the Management Assessment and an Assurance Opinion provide to financial statement users?

Which financial statement for a business would you look at to determine the company's earnings performance during an accounting period?

Labor contracts and purchase order commitments are examples of ____________________ contracts.

On a common size basis, which of the following assets is normally largest for a commercial bank?

How easily can customers switch to substitute products is a question one might ask when assessing the ___________________________________.

Which of the following assets would appear on the balance sheet at an amount greatly below its fair market value?

Which two organizations are working together to harmonize financial reporting worldwide?

Which of the following economic characteristics is consistent with a grocery store chain?

Why is the operating activities section of the statement of cash flows often believed to be the most important part of the statement?

Under the ____________________ basis of accounting, a firm recognizes revenue when it performs all or a substantial portion, of the services it expects to perform and receives either cash or a receivable.

How easily can new firms enter a market is a question one might ask when assessing _____________________________________________.

Assets that do not represent a claim to a fixed amount of cash are called ____________________ assets.

Asset and Liability Valuation and Income Measurement

Income Flows Versus Cash Flows: Understanding the Statement of Cash Flows

Profitability Analysis

Risk Analysis

Financing Activities

Investing Activities

Operating Activities

Accounting Quality

Forecasting Financial Statements

Risk-Adjusted Expected Rates of Return and the Dividends Valuation Approach

Valuation: Cash-Flow-Based Approaches

Valuation: Earnings-Based Approaches

Valuation: Market-Based Approaches

Filters